Coyote Fault Gold & Silver Project - Nevada
80% - Golden Phoenix has an option to earn an 80% interest in the Coyote Fault Gold and Silver Project.
- Project size: 796 acres adjacent to Mineral Ridge Gold Project
- Phase I geologic mapping and outcrop sampling (above ground) completed in December, 2010
- Identified a new potential gold exploration target
- Development plans currently underway for Phase II exploration/drilling
- May include a combination of test drilling and geochemical/geophysical analysis
- Average grade of all 29 outcrop samples was 0.3 grams of gold, with the richest sample being sample number 009 at 5.89 g/t Au and the lowest being certain samples yielding 0 g/t Au.
- Of particular interest were sample numbers 009 (5.89g Au), 010 (0.605g Au), and 011 (0.117g Au) that were taken from mineralized outcrops near the southern end of the Coyote fault claim
Phase I Report Summary
The report states the Coyote Fault property has the same geology and depositional model as the rest of the Mineral Ridge mining district. The report concludes the data supports favorable exploration potential for the Coyote Fault property. See December 3, 2010 press release.
- The Coyote Fault property is located in the middle of the Walker Lane tectonic belt with Sierra Block uplift to the west and the Basin and Range to the east. The property is on the northern flank of Mineral Ridge and is along the eastern edge of the Silver Peak Range
- The property is comprised of 34 claims
- No modern mining techniques have been applied to the Coyote Fault property
- In February of 2013, Golden Phoenix entered into an Amended and Restated Option Agreement to earn an 80% interest in the Coyote Fault Gold and Silver Project in Esmeralda County, Nevada from Mhakari Gold (Nevada) Inc.
- To earn its 80% interest, Golden Phoenix is required to make certain cash payments totaling $110,500, issue a total of 20,000,000 shares of our common stock and expend a combined minimum of $2,000,000 on both the Coyote Fault and Vanderbilt Properties over a 48 month period.
Cautionary Note: Although the early results of exploration on the Coyote Fault property look promising and may support the Company’s decision to continue expending its resources on further exploration, the test results set forth above are not yet sufficient to establish any proven or probable ore reserves under traditional mining standards, nor has there been sufficient exploration to determine if the extraction of precious metals on this property is feasible, from an economic point of view. Investors should not infer from these early assay results that there exists sufficient amounts of precious metals on this property to support profitable mining operations now, or in the immediate future.